Economy – KOF Economic Barometer remains above medium-term average despite decline

The KOF Economic Barometer decreases in January. After rising in the previous months, it continues to remain above its medium-term average. The outlook is clouding over somewhat, but remains above average.

In January, the KOF Economic Barometer falls by 1.1 points to a level of 102.5 (after revised 103.6 in the previous month). Among the indicators included in the KOF Economic Barometer, the decrease is particularly reflected in the indicator bundles for hospitality and for construction. In contrast, positive developments are shown by the indicator bundles for manufacturing and for financial and insurance services.

The sub-indicators within the producing industry (manufacturing and construction) show mixed developments. While particularly the sub-indicators for employment prospects, assessment of production barriers as well as for profits and exports are under pressure, especially the sub-indicators for order backlogs, the general business situation and for the competitive situation show a brightened outlook.

The development within manufacturing is similarly mixed. Particularly the indicators for the electrical industry as well as for the wood, glass, stone and earth segment experience a setback. However, favourable developments are especially exhibited by the indicators for machinery and equipment manufacturing, for the metal industry and for paper and printing products.